What does the non-deductible clause in auto insurance mean?
2 Answers
Non-deductible coverage in auto insurance is an additional coverage attached to commercial insurances such as vehicle damage insurance or third-party liability insurance. Here is a detailed introduction: 1. Overview: The non-deductible clause in auto insurance is an additional coverage, specifically referring to the non-deductible special agreement clause, which is a type of commercial additional coverage. This coverage generally means that, as per a special agreement, the insurer is responsible for compensating the deductible portion that the insured would otherwise bear, calculated based on the deductible rate stipulated in the main insurance policy after an insured event occurs. 2. Rules: In the event of a traffic accident where the compensation exceeds the payout limit of the third-party liability insurance or vehicle damage insurance, having the non-deductible coverage allows the insured to transfer the 5%-20% liability they would bear to the insurance company. However, the non-deductible coverage does not guarantee 100% compensation; whether compensation is provided depends on the actual circumstances of the accident as determined by the insurance company. Based on the insured object, the non-deductible coverage can be further divided into non-deductible for basic insurance and non-deductible for additional coverage. Car owners should understand these details thoroughly when purchasing insurance.
The "no deductible" option in car insurance is essentially an additional coverage you can choose when purchasing a policy. If you're at fault in an accident, the insurance company will cover the entire cost without you having to pay the deductible portion. For example, if the damage amounts to 10,000 yuan with a 15% deductible rate, you'd normally pay 1,500 yuan out of pocket. But with this coverage, the insurer covers it all. I find this extremely practical, especially for someone like me who's just started working and is tight on savings. In case of a minor collision, it prevents a major financial hit. The premium might be slightly higher—maybe an extra few dozen yuan per month—but in the long run, it saves money and hassle. I recommend new drivers or those who frequently drive long distances consider adding this coverage. Given the high accident rates in city driving, an extra layer of protection means added peace of mind. When choosing insurance, ask your advisor for details, as deductible rates may vary between companies. Picking the right one can significantly reduce repair cost burdens.
